Gencom-Led Partnership Acquires Two St. Pete Beach Resorts for $100 million
As part of its ongoing strategy to acquire unique hospitality assets anchored by strong underlying real estate and with unique repositioning opportunity, a Gencom-led partnership has announced the acquisition of two resort assets situated along St. Pete Beach, Florida. The Beachcomber Beach Resort and Hotel and The Grand Plaza Beach Hotel & Beach Resort were acquired at a reported purchase price of $100 million. The partnership will commit an additional $24 million for major renovations to upgrade and rebrand the two properties.
While both assets will initially remain independent and unbranded, BENCHMARK®, a global hospitality company, has been retained to manage and reposition the two properties on St. Pete Beach, a resort island off the coast of St. Petersburg in Tampa Bay and within the heart of Florida's popular Gulf Coast. Gencom and Benchmark forged a strategic management partnership in 2016.
"The purchase of the two St. Pete Beach properties represents a continuation of our firm's strategy to seek out profitable hospitality investments in locations with strong market fundamentals and opportunities to create value through active management and repositioning," said Alessandro Colantonio, Gencom's executive vice president Acquisitions & Capital Markets. "Benchmark's experience in every aspect of hotel management and marketing and its pioneering role in the development of experiential travel, will enable us to maximize these assets though a far-sighted renovation program and productive reorganization."
Gencom's Miami-based acquisition and capital markets group led the sourcing, underwriting and closing of the acquisition which included securing equity co-investment and placement of acquisition financing. Post-closing, Gencom's asset management team will work closely with Benchmark to oversee the planned renovation and repositioning initiatives.
"Gencom is excited to add these properties to its portfolio and to expand our strategy with Benchmark," said Karim Alibhai, Gencom's founder and principal. "We continue to be bullish in hospitality, for the right opportunities, and we were driven by the positive market trends and underlying real estate characteristics of these assets."
The high-rise Grand Plaza Beach Hotel & Beach Resort offers 156 rooms and four food and beverage outlets, while the Beachcomber Beach Resort and Hotel consists of 102 rooms and two restaurants, including the award-winning Jimmy B's Beach Bar and Grill.